September 12, 2007
 

UK poultry producers feeling the pain as wheat prices rise

A rise in UK's poultry prices is inevitable as spiralling wheat prices drive up the cost of poultry production, the British Poultry Council reported.

Feed wheat costs are 40 percent higher than this time last year and almost 70 percent higher than 2005, the organisation reported.

Wheat makes up two-thirds of the feed used for chicken, turkey and other poultry in Britain.

The rise in wheat prices meant demand for alternatives such as soymeal, which is used only in poultry feed in the UK, has surged.

A report by Deloitte & Touche last month stated that food processors can expect no relief in the near future from high prices.

However, most UK consumers seem open to the idea of paying a little bit more to make sure British farms stay in business.

About 78 percent of those polled said that they would be prepared to pay a few pence extra to cover rising production costs, according to a survey commissioned by the British Pig Executive (BPEX).

Of those willing to fork out more for pork, 42 percent said they would be prepared to pay up to 10 per cent. Another 36 percent said they would be willing to pay up to 5 percent more.

Industry experts predict high wheat prices would remain for the next 12 months.